Correlation Between GUARDANT HEALTH and NORDHEALTH

Can any of the company-specific risk be diversified away by investing in both GUARDANT HEALTH and NORDHEALTH at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining GUARDANT HEALTH and NORDHEALTH into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between GUARDANT HEALTH CL and NORDHEALTH AS NK, you can compare the effects of market volatilities on GUARDANT HEALTH and NORDHEALTH and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in GUARDANT HEALTH with a short position of NORDHEALTH. Check out your portfolio center. Please also check ongoing floating volatility patterns of GUARDANT HEALTH and NORDHEALTH.

Diversification Opportunities for GUARDANT HEALTH and NORDHEALTH

0.0

Correlation Coefficient

GUARDANT HEALTH  NORDHEALTH

Pay attention - limited upside

The 3 months correlation between GUARDANT and NORDHEALTH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding GUARDANT HEALTH CL and NORDHEALTH AS NK in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NORDHEALTH AS NK and GUARDANT HEALTH is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on GUARDANT HEALTH CL are associated (or correlated) with NORDHEALTH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NORDHEALTH AS NK has no effect on the direction of GUARDANT HEALTH i.e., GUARDANT HEALTH and NORDHEALTH go up and down completely randomly.

Pair Corralation between GUARDANT HEALTH and NORDHEALTH

If you would invest  0.00  in NORDHEALTH AS NK on February 13, 2024 and sell it today you would earn a total of  0.00  from holding NORDHEALTH AS NK or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

GUARDANT HEALTH CL  vs.  NORDHEALTH AS NK

GUARDANT HEALTH CL

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days GUARDANT HEALTH CL has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, GUARDANT HEALTH is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

NORDHEALTH AS NK

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days NORDHEALTH AS NK has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, NORDHEALTH is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with GUARDANT HEALTH and NORDHEALTH

The main advantage of trading using opposite GUARDANT HEALTH and NORDHEALTH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GUARDANT HEALTH position performs unexpectedly, NORDHEALTH can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in NORDHEALTH will offset losses from the drop in NORDHEALTH's long position.

The idea behind GUARDANT HEALTH CL and NORDHEALTH AS NK pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.